Alphabet's Promising AI Investment Outlook
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1 hour ago
0mins
Should l Buy GOOG?
Source: Fool
- Significant Revenue Growth: Alphabet's revenue increased by 18% year-over-year in Q4 2025, reaching $113.8 billion, reflecting a strong rebound in advertising spending post-election year, thereby solidifying its market position.
- Substantial Net Income Surge: The net income soared by 30% in Q4 compared to the same period in 2024, exceeding Wall Street expectations, indicating robust performance in advertising and subscription revenues, particularly with YouTube's annual revenue surpassing $60 billion.
- Surge in Capital Expenditures: Last year, Alphabet's capital expenditures totaled $91 billion, with forecasts for 2026 rising to between $175 billion and $185 billion, primarily for building AI-related infrastructure, demonstrating the company's strong commitment to future technological advancements.
- Strong User Growth: The Gemini app now boasts 750 million monthly active users, while Google Cloud achieved a remarkable 48% revenue growth in Q4, indicating robust demand for enterprise AI offerings and further enhancing Alphabet's long-term growth potential.
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Analyst Views on GOOG
Wall Street analysts forecast GOOG stock price to rise
15 Analyst Rating
14 Buy
1 Hold
0 Sell
Strong Buy
Current: 309.370
Low
255.00
Averages
336.08
High
400.00
Current: 309.370
Low
255.00
Averages
336.08
High
400.00
About GOOG
Alphabet Inc. is a holding company. The Company's segments include Google Services, Google Cloud, and Other Bets. The Google Services segment includes products and services such as ads, Android, Chrome, devices, Google Maps, Google Play, Search, and YouTube. The Google Cloud segment includes infrastructure and platform services, collaboration tools, and other services for enterprise customers. Its Other Bets segment is engaged in the sale of healthcare-related services and Internet services. Its Google Cloud provides enterprise-ready cloud services, including Google Cloud Platform and Google Workspace. Google Cloud Platform provides access to solutions such as artificial intelligence (AI) offerings, including its AI infrastructure, Vertex AI platform, and Gemini for Google Cloud; cybersecurity, and data and analytics. Google Workspace includes cloud-based communication and collaboration tools for enterprises, such as Calendar, Gmail, Docs, Drive, and Meet.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Substantial Net Income Surge: The net income soared by 30% in Q4 compared to the same period in 2024, exceeding Wall Street expectations, indicating robust performance in advertising and subscription revenues, particularly with YouTube's annual revenue surpassing $60 billion.
- Surge in Capital Expenditures: Last year, Alphabet's capital expenditures totaled $91 billion, with forecasts for 2026 rising to between $175 billion and $185 billion, primarily for building AI-related infrastructure, demonstrating the company's strong commitment to future technological advancements.
- Strong User Growth: The Gemini app now boasts 750 million monthly active users, while Google Cloud achieved a remarkable 48% revenue growth in Q4, indicating robust demand for enterprise AI offerings and further enhancing Alphabet's long-term growth potential.
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